Oracle Cuts Jobs Amid Financial Impact of AI

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Key Takeaways

1Oracle plans to cut thousands of jobs to offset costs related to the expansion of its AI data centers.

2The company, led by Larry Ellison, is investing heavily for clients such as OpenAI, despite a 54% drop in its stock.

3Analysts anticipate negative cash flow until 2030, although Oracle raised $50 billion in February.

💡Why it matters — These measures highlight the significant financial challenges for companies heavily investing in AI, directly impacting their employees and stock performance.

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Full Analysis

Oracle plans to significantly reduce its workforce to address the high costs associated with its expansion in the field of artificial intelligence. According to Bloomberg, these job cuts, which could affect several divisions, are expected to take place next March. Certain categories of positions will be particularly targeted, in line with the company's new strategic directions.

As of the end of May 2025, Oracle had approximately 162,000 employees worldwide. Under the leadership of Larry Ellison, the company is heavily investing in data center infrastructure to support major clients in the AI sector, such as OpenAI.

Analysts predict that Oracle's free cash flow could turn negative in the coming years, before these investments begin to generate profits around 2030. In February, Oracle announced its intention to raise up to $50 billion through debt and equity sales to support its projects.

Furthermore, Oracle's stock has dropped 54% since its peak in September 2025. Last September, the company had already revealed an unprecedented restructuring plan, with an estimated cost of $1.6 billion.

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